ICBC purchases 70% of Bank of East Asia’s Canadian unit

The world's largest bank by market value Industrial and Commercial Bank of China (ICBC) declared on Thursday about its intension to acquire 70% of Bank of East Asia's Canadian unit. In such a way ICBS is expanding overseas.

According to those both banks, ICBC will pay $73 million (HK$567 million) for the stake. Also they added that Hong Kong-based Bank of East Asia would buy out ICBC in ICEA Finance, their Hong Kong joint venture. Here, Bank of East Asia will pay HK$372 million for the 75% of the venture held by ICBC. Another 25% has already belonged to Bank of East Asia.

"We are selling the stake to ICBC because they have lots of customers, so this will enlarge the pie," Bank of East Asia Deputy Chief Executive Samson Li said.

The Bank of East Asia acquisition occurs in spite of stricter stance of Chinese regulators on overseas acquisitions by major financial institutions since negative investment experience of some huge financial institutions.